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UK games tax breaks delayed

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The long-awaited video game tax relief in the UK won’t come into force next month as originally expected, the UK government confirmed today as part of the 2013 budget.

It said the introduction of tax breaks has been delayed pending European Commission approval of the cultural test that will determine which projects qualify for relief.

While clearly disappointed by the hold up, the association for UK Interactive Entertainment (UKIE) and games industry trade body TIGA both said they’d received assurances that the government remains committed to introducing tax breaks at the earliest possible opportunity.

UKIE CEO Jo Twist said: "We were prepared for this as it was always a possibility when establishing an entirely new European tax scheme, especially as games are so different to film and TV. We hope that the delay will be a short one and shall now be doing everything that we can, working with UK government, the European Commission and TIGA, to get the state aid approval that we need as soon as possible. They absolutely will still happen."

TIGA CEO Richard Wilson said: "Although games tax relief has not yet received state aid clearance from the EU Commission, TIGA has been assured that the UK government is committed to this relief, will be legislating for this relief in the finance bill and will deliver this relief. Games tax relief is vitally important because its introduction will enable the UK to compete on a level playing field against our overseas competitors who already have tax breaks.”

In better news, the government today outlined plans to increase skills funding in the creative industries by £10 million over the next two years, having already pledged £6 million last November, of which a quarter had been made available to the games industry.

TIGA research published earlier this week found that employment in the UK development sector grew by four percent in 2012 following three straight years of declines.

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22 comments

  • YouGetNothingYouLoseGoodDaySir - March 21, 2013 9:09 a.m.

    Corporate welfare of any kind is detrimental to economic growth. Crony capitalism and state favoritism lead not only to dependency, but incrementally increasing dependency. The key to ensuring that corporations remain in the country the creation of a much lower, or even net zero, corporate tax enviroment. Stimulus plans, bailouts, and the whole of Keynesian economics in general is conducive to failure.
  • GamesRadarCollanderCooper - March 21, 2013 1:47 p.m.

    The New Deal would like to speak with you.
  • winner2 - March 20, 2013 8:36 p.m.

    All I can say is good for the uk with the employment rise, that's nice.
  • majormoses117 - March 20, 2013 8:31 p.m.

    Lol internet fights.
  • ventanger - March 20, 2013 11:12 a.m.

    Why would we want to give anyone tax breaks? After all, those rich corporate fat cats need to pay their fair share! Or something.
  • Tronto13 - March 20, 2013 12:28 p.m.

    Because making games is expensive, tax breaks make it cheaper and therefore provide an incentive for publishers to base studios in the country. No tax breaks make it more expensive to make games in a country so studios are more likely to be moved out of the country to places that do offer them. Therefore less jobs and a decline in the British gaming industry.
  • ventanger - March 20, 2013 1:39 p.m.

    If your argument is that tax breaks create jobs, why not give everyone tax breaks? Except that the reason it has to have such a high tax rate is because of all the country's unfunded obligations. Other countries can have a lower rate because they practice better financial austerity, artificially lowering the cost of doing business if they pass a "cultural test" (which itself is deeply creepy) just creates a higher debt. Er... I mean... FAIR SHARE FAIR SHARE MAKE THEM PAY THEIR FAIR SHARE!
  • Tronto13 - March 20, 2013 2:01 p.m.

    It is not just jobs, it is the presence of the industry in the country. If they no longer have studios in the country that is money that is not then circulating in the country. Tax breaks encourage companies to have studios in the country and the country then benefits from the money that comes in. Tax breaks on everything is not viable, they make sense on things that would be more likely to move somewhere else without them, ie film and game studios. Other businesses like restaurants, law firms, shops etc will always be there so tax breaks make no sense.
  • Tjwoods18 - March 20, 2013 3:47 p.m.

    Tax breaks encourage market growth, Tronto13, but they do not in any way make making video games cheaper. If that was the case we would see a reduction In video game prices. When a country hands out tax breaks it, of course, does several things. Among the most prevalent: Makes an industry dependent on corporate welfare, grows company executives wealth, and aggregates prices when those takes breaks are no more.
  • Tronto13 - March 20, 2013 3:59 p.m.

    The day to day running of a studio is part of the cost of making games. Paying taxes is part of running a business. Tax cuts = less tax, therefore an expense that is lessened for the studio owner.
  • Tjwoods18 - March 20, 2013 8:27 p.m.

    But what does a country tax a business on? They do it on their profits; therefore, until a studio physically develops, mass produces, and sells the game they are not feeling the effects of the tax break. Overall, if your theory about tax breaks making games cheaper were true then the $60 price point would not be here today.
  • GamesRadarCollanderCooper - March 20, 2013 4:17 p.m.

    He's trolling you, bro. He's one of these intellectually stunted Ayn Rand disciples who believes that any taxes are confiscatory. Because, you know, who needs roads and schools, right? What he means to say is, "Durr... people on welfare are parasites... durr... even though I'm white trash who probably lives off food stamps... durr. WE built that... durr." He's probably completely oblivious to the fact that Europe has imposed tremendous economic austerity for the past three years and the result is Italy's GDP contracting by 0.9%, Spain's 25% umemployment rate, and Greece's economy contracting by 4%.
  • ParagonT - March 20, 2013 4:42 p.m.

    Uhhhh.... I have no idea what you're talking about.... I really have no idea what this has to do with his reply. And to be frank, I see the total opposite of some of the things you inferred he meant. This is were big kids come to have a discussion, and not a place for children to come on here talking about who's "white trash" while you say "bro" in the first sentence like your still in primary school. So please come back when your off the rag.
  • GamesRadarCollanderCooper - March 20, 2013 4:56 p.m.

    LOL. This idiot calls me immature and then implies I'm on "the rag." Secondly, I wasn't even addressing you, so shut your mouth, you contemptible wretch
  • ParagonT - March 20, 2013 5:29 p.m.

    I'm not really sure how that was so "mind blowing" when I said those insults. But If it was that big of a shock, you'll be in for a treat when you finally reach middle school and read some Shakespeare. You should read some of his insults, you'll probably have a heart attack when he says 'bites', then 'thumb'.
  • GamesRadarCollanderCooper - March 20, 2013 7:27 p.m.

    Go play in traffic
  • ventanger - March 20, 2013 6:15 p.m.

    The guy who stole his name from somebody who openly calls him a troll, just called me a troll. Day, made. You sound like a typical Obama-drone shithead, but whatevs, I'll stop feeding you, you poor sad lonely little pimple on the ass-end of humanity.
  • GamesRadarCollanderCooper - March 20, 2013 6:49 p.m.

    I hate Obama almost as much as I hate you
  • GamesRadarCollanderCooper - March 20, 2013 6:51 p.m.

    ventager's probably stocking up on Campbells soup and ammo because he thinks Obama is going to impose sharia law, take his precious guns, and then put him in a FEMA camp
  • christopherwesten - March 20, 2013 6:55 p.m.

    Where'd you get your degree in Economics? The bottom of a cereal box? Let's start from the top; Key Word: Unfunded, Where does funding come from? Taxes!! States and Principalities also pay out dividends and take loans on all different kinds of bonds to fund projects they cant afford. Do you really think a $500 million dollar construction project will be paid from the vault whilst having enough money to cover schools, courts, libraries and police among other things. So if you want to talk about financial stability, let me know what country you're talking about. North Korea? Any democratical country or social republic will have this same problem. debt. So when i see the UK taking a lesson from George Bush's few accomplishments; a stimulus and a tax break. You save more money, you spend more money and fill the government's pockets with more taxes: It's the cycle of greed and as for giving everyone tax breaks. Get your sister pregnant and you'll get an extra $2000 next April.

Showing 1-20 of 22 comments

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